The following are items of interest related to the tax function:
The University is recognized as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income tax on its related activities. The University is subject to federal and state income tax, however, on unrelated business income, which is reportable to the Internal Revenue Service (IRS) on Form 990-T and the Franchise Tax Board on Form 199. The University also files an annual information return with the IRS on Form 990.
Commitment to Compliance
The University is committed to maintaining its tax-exempt status and complying with all federal and state laws related to that status. Although the University is exempt from income taxes, it is subject to numerous withholding and reporting requirements related to its traditional business activities such as payroll, accounts payable, student financial support, travel, and other activities. Tax compliance related to these activities is coordinated by the Internal Audit and Tax Compliance department.
Reporting of Non-Compliance
Departments are also responsible for tax compliance in accordance with applicable University policies and procedures. Business Managers and supervisors should contact the Internal Audit and Tax Compliance department to request training or guidance with respect to their tax issues. Employees who observe suspected improper activity are strongly encouraged to contract their supervisors or use the University’s Whistleblower Hotline. See Whistleblower Policy.
Tax Compliance Resources
- Fellowship Checklist
- Independent Contractor Agreement
- Independent Contractor Checklist
- Nonresident Alien Payments Policy
- Out-of-State Withholding Form
- Sales and Use Tax Presentation
- Sales and Use Tax Rates Applicable to USF
- Policy On Tax Treatment Of Payments Made To Individuals (see Appendix B)
- Taxation of Fringe Benefits Presentation
- Unrelated Business Income Questionnaire
- Unrelated Business Income Tax Fundamentals, Definitions and Exceptions Presentation